Question

You decide to buy a 60 inch plasma-screen TV. You borrow $4500 from the electronics store at 1.9% per month simple interest, with no payments due for 2 years from the date of purchase. How much will you owe on the loan after 15 months?

Answer 1

`$4606.88` (rounded to the nearest cent)

Explanation:

The equation for simple intrest is:

`I=(PRT) /100`

Where:
P = Principle (the amount that is going to have intrest on it)
R = Rate of interest
T = Time in years

Since you did not pay anything since the date of purchase, P =`$4500`, R = `1.5` and T = `1. 25` (since `15` months is `1. 25` years)

Plugging all the numbers into the simple interest equation... You get:

`I=(4500xx1. 9xx1.25)/100`

`=$106.875`

Don't forget to add your principle back in, as this is only the "extra" money coming from the intrest

`$106.875+$4500=$4606.875`

Round your answer to the nearest cent

`~~$4606.88`